Question: Web fulfillment companies may start a new trend in online
Web fulfillment companies may start a new trend in online retailing. These firms allow conventional retailers to operate their online divisions without the expense and hassle of developing and running their own e-commerce operations. GSI Commerce, for example, handles Web site design, order fulfillment, and customer service for retailers who do not want to perform these distribution tasks themselves. Major retailers such as Dick’s Sporting Goods, Modell’s, QVC and Kmart have outsourced their online businesses to GSI Commerce. But as far as customers know, they are dealing only with the retailer when they visit the Web site. The Web fulfillment company stays completely behind the scenes. So, with al- most no capital or human resources invested, retailers can still have a first-rate Web site as well as online sales and service capabilities. The catch is that the Web fulfillment company gets to keep as much as 90 percent of online revenue. But on the other hand, the 10 percent that goes to the retailer is virtually pure profit. Do arrangements such as these make sense? What are the advantages and disadvantages from the retailer’s point of view?
Answer to relevant QuestionsBest Buy is by far the largest consumer electronics retailer in the world with sales of over $45 billion and almost 4,000 stores world wide. Best Buy enjoys tremendous power in the marketing channels within which it ...Exclusive dealing, full-line forcing and tying agreements all have something in common. What is it? Discuss the antitrust implications of this common element. Marketing channels reflect the sociocultural environments within which they exist. Explain this statement. By 2009, social media services, such as Facebook and Twitter, had become a popular marketing tool for small businesses. In fact, almost 25 percent of firms with fewer than 100 employees were using social media for marketing ...Discuss some of the behavioral problems that can “foul up” effective communications in the marketing channel.
Post your question